PNB to finalise life insurance joint venture

July 7th, 2011 - 12:27 am ICT by IANS  

State Bank of India Chennai, July 6 (IANS) Public sector Punjab National Bank (PNB) is likely to firm up its life insurance foray by this September, said a top official here Wednesday.

“We are looking to tie with an existing life insurer, and have shortlisted companies like Aviva Life and Metlife Insurance,” K.R. Kamath, chairman and managing director, told reporters.

With public sector banks like State Bank of India, Canara Bank, Oriental Bank of Commerce, Bank of India and others having a major presence in the life insurance sector leveraging their vast branch network, it is logical for PNB to look at the sector.

The bank was also in talks with Bharti Axa Life. However, the Bharti group recently announced its stake sale to Reliance Industries.

According to Kamath, the pressure on the net interest margin (NIM) due to upward revision in interest rates by the Reserve Bank of India (RBI), the PNB is not looking at increasing its non interest income through loan syndication activities and others.

PNB has syndication cells in New Delhi, Chenai and Mumbai and has done a business of around Rs.60 crore.

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